The program, launched in July 2008, consists of two facilities called Regional Assessment Centers, located in Newark and Trenton. When a parolee commits a technical violation -- such as missing a meeting or failing a drug test -- they are housed for 15 to 30 days by a private company, Community Education Centers. There, parolees are assessed to determine whether incarceration or another form of supervision is the right response.

In New Jersey, the majority of parolees returning to prison each year -- about 85 percent of almost 3,000 -- committed technical violations, not new crimes. Lowering that number would help reduce the state's overall prison population.

Parole officials said it's the first program of its kind in the country.

"We are proud of this Innovations Award, and would encourage other states to learn from what New Jersey has accomplished," Parole Chairwoman Yolette Ross said.

According to the Parole Board, the program saved the state $2 million in incarceration costs during the last fiscal year. It is expected to save another $14 million in the current fiscal year.